California drivers brace for costly new global warming gas tax

August 29, 2014

Phineas Fahrquar:

This state has gone mad. We’re doing everything to drive prosperity away in pursuit of “progressive” fantasies.

Originally posted on Watts Up With That?:

Gasoline_taxNeal Kaye writes | Californians already pay the nation’s second highest gas tax at 68 cents a gallon — and now it will go up again in January to pay for a first-in-the-nation climate change law.

“I didn’t know that,” said Los Angeles motorist Tyler Rich. “It’s ridiculous.”

“I think it’s terrible,” added Lupe Sanchez, pumping $4.09-a-gallon gas at a Chevron near Santa Monica. “The economy, the way it is right now with jobs and everything, it’s just crazy.”

When gas prices go up, motorists typically blame oil companies, Arab sheiks and Wall Street speculators. This time they can blame Sacramento and former Gov. Arnold Schwarzenegger for passing a bill requiring California to reduce carbon emissions to 1990 levels by 2020.

http://www.foxnews.com/politics/2014/08/27/california-hidden-gas-tax/

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Some notes: gasoline in California will be subject to California’s Global Warming Solutions Act tax (Schwarzenegger signed AB 32 into law in 2006) which will boost the…

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New Diaper Subsidy is A Raise For Welfare Recipients

August 8, 2014

Phineas Fahrquar:

Proposals like this, when the state suffers from pathetic infrastructure and its finances are a wreck, makes me wonder if some sort of “political dementia” hasn’t taken hold in Sacramento. Regardless, Grimes is right: a subsidy will only hide the trues cost of the product and encourage manufacturers to raise prices, because now it’s a “right.”

Originally posted on KATY GRIMES:

Diapers, diapers, diapers for everyone!

If ever there was evidence of the need for a part time Legislature in California, it is now: California Democrats are pushing a diaper subsidy program for welfare parents.

The rationale for this idea is right out of the welfare-state handbook: low-income parents cannot take advantage of free or subsidized child care if they cannot afford to leave disposable diapers with their child at care facilities.

This is nothing more than a boost to welfare payments, without actually identifying it as an increase. California taxpayers would be livid if the Legislature was honest about increasing welfare payments.

AB 1516 by Assemblywoman Lorena Gonzalez, D-San Diego, would create a new taxpayer-subsidized program to provide eligible families already participating in CalWORKS, with $80 a month to buy diapers for children under the age of two.

“Assemblyman Mark Stone, D-Scotts Valley, said the true cost of the bill…

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Labor Unions Swindle Workers and Shakedown Employers

July 30, 2014

Phineas Fahrquar:

In a nutshell, unions are legal cartels that work to increase members’ pay by controlling the supply of labor, removing competition. The linked article is a good example of how, over time, unions almost inevitably move from serving workers’ interests to being little better than strong-arm rackets out for themselves.

Originally posted on KATY GRIMES:

Labor unions are bad for workers and employers. But sometimes the good guys prevail.

The lawsuit filed by a Fresno farmworker against members of the Agricultural Labor Relations Board alleging civil rights violations will move forward to trial, a federal judge just ruled last week.

Silvia Lopez

In February of this year, Gerawan Farming worker Silvia Lopez sued the gubernatorial appointees and regional staff of the ALRB alleging that their refusal to count the Gerawan farmworkers’ decertification votes violated her 1st and 14th Amendment rights.

The Agricultural Labor Relations Board says it exists to protect the rights of all agricultural employees, including those not wanting labor organization representation, as is the case with Gerawan Farming employees. However, Gerawan farming employees say they have not received any assistance from the ALRB.

Whenever they can, labor unions historically try to gain control over entry into the labor market. “Such measures are for…

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Surprising no one, California loses another business to Texas

July 20, 2014

Moving

This time, Perry’s Poachers have snagged Omnitracs LLC of San Diego, a fleet management firm that will be moving to Dallas and taking 450 jobs with it:

Fleet management software company Omnitracs LLC will relocate it headquarters to Dallas from San Diego, creating 450 jobs and $10 million in capital investment, Gov. Rick Perry’s office announced Friday.

The company will move into KPMG Centre downtown.

Omnitracs is the latest in a wave of California relocations to North Texas announced this spring and summer.
The Texas Enterprise Fund is providing a $3.9 million incentive to attract Omnitracs. The new headquarters will house jobs in a variety of high-paying fields, including engineering, research and development and finance.

Omnitracs provides fleet management solutions for the trucking industry. Its services include software applications, GPS fleet tracking, platforms and information services.

Omnitracs is just the latest in a long line of businesses that have fled or are about to flee the once-Golden State. The article lists others, including Toyota, and mentions Vista Equity Partners, a California firm that specializes in buying firms and moving them to Texas.

Yes, the one business that California can keep is one that helps others get the heck out.

Well, we bloody well deserve it, with a business climate that’s designed to drive people away, not bring them here. I’m old enough to remember when California was a place to people rushed to, in order to build a future.

Now, thanks to 40 years of progressive misrule, they rush to get out, in order to save what future they have left.

via Stephen Frank

RELATED: Victor Davis Hanson, a fellow Californian, on our frivolous legislature. Must reading.

(Crossposted at Sister Toldjah)


California Senate passes $13 minimum wage, jobs flee in terror

June 1, 2014
"But at least we won the election! Obama!!"

“But at least they raised the minimum wage!”

Perhaps they didn’t want to be left behind by their progressive friends in Seattle, but the California State Senate last Wednesday passed a bill that would raise the minimum wage to $13 per hour by 2017. From the legislative analyst’s summary:

SB 935, as amended, Leno. Minimum wage: annual adjustment.

Existing law requires that, on and after July 1, 2014, the minimum wage for all industries be not less than $9 per hour. Existing law further increases the minimum wage, on and after January 1, 2016, to not less than $10 per hour.

This bill would increase the minimum wage, on and after January 1, 2015, to not less than $11 per hour, on and after January 1, 2016, to not less than $12 per hour, and on and after January 1, 2017, to not less than $13 per hour. The bill would require the automatic adjustment of the minimum wage annually thereafter, to maintain employee purchasing power diminished by the rate of inflation during the previous year. The adjustment would be calculated using the California Consumer Price Index, as specified. The bill would prohibit the Industrial Welfare Commission (IWC) from reducing the minimum wage and from adjusting the minimum wage if the average percentage of inflation for the previous year was negative. The bill would require the IWC to publicize the automatically adjusted minimum wage.

The bill would provide that its provisions not be construed to preclude the IWC from increasing the minimum wage to an amount greater than the calculation would provide or to preclude or supersede an increase of the minimum wage that is greater than the state minimum wage by any local government or tribal government.
The bill would apply to all industries, including public and private employment.

(h/t California Political Review)

“Leno” is Senator Mark Leno, whose district includes, naturally, San Francisco. You can kind of guess his politics. (He also backed a bill allowing children to have more than two parents. Yes, you read that right.) He’s also a prime example of Thomas Sowell’s observation about politicians who don’t have to suffer the consequences of decisions they impose on others. In this case, causing the cost of labor to skyrocket forces business owners to decide whether to pass on the cost to consumers, cut workers’ hours or whole jobs, or go out of business. As the head of CKE Restaurants told CNBC, people are doing all three:

CKE Restaurants’ roots began in California roughly seven decades ago, but you won’t see the parent company of Carl’s Jr. and Hardee’s expanding there much anymore.

What’s causing what company CEO Andy Puzder describes as “very little growth” in the state?

In part it’s because “the minimum wage is so high so it’s harder to come up with profitable business models,” Puzder said in an interview. The state’s minimum wage is set to rise to $9 in July, making it among the nation’s highest, and $10 by January 2016.

In cities in other states where the minimum wage has gone up considerably, Puzder said “franchisees are closing locations” after riding out lease expirations.

If the federal minimum hourly pay shoots up to $10.10 from the current $7.25—as many lawmakers and President Barack Obama are advocating—Puzder predicts fewer entry-level jobs will be created. If this happens, CKE would also create fewer positions, he forecast.

A recent nonpartisan Congressional Budget Office study also predicted mass job losses, estimating that a hike to $10.10 could result in a loss of about half a million jobs by late 2016, even as it lifted many above the poverty line.

(h/t California Political Review)

For some reason, I don’t think those who lose their jobs because of the wage increase will see themselves as “lifted out of poverty.”

Minimum-wage jobs are not meant to be lifelong careers. For people just entering the labor market, they’re ways to acquire skills needed to move on to better-paying jobs. For others, they’re a means to bring in additional, supplementary income into the household. The pro-increase arguments distort facts and wrap them in myth, all to disguise what is really a wealth redistribution program.

CKE’s Puzder goes on to relate how, when minimum wage increases are combined with the added expenses imposed by Obamacare, franchisees have chosen not to open new restaurants or have even closed locations, meaning these are jobs lost. But they do it because they can get a better return on their investment money elsewhere, such as by putting it in bonds.

It’s called economic common sense, something Senator Leno and his colleagues are woefully lacking in.

PS: SB 935 has now gone to the Assembly, and I will be shocked if it doesn’t pass. It’s frightening to think we have to rely on Governor Brown to be the sane one in the room and veto this bill when it shows up on his desk.

(Crossposted at Sister Toldjah)


Governor ‘Moonbeam’ beclowns himself over sea level rise at LAX airport

May 13, 2014

Phineas Fahrquar:

Sigh. And yet he’s sure to win reelection. I weep.

Originally posted on Watts Up With That?:

Proof positive politicians can’t do simple math.

From the LA Times today:Brown_LAX_SLR

Brown’s remarks came a day after the release of two studies finding that a slow-motion and irreversible collapse of a massive cluster of glaciers in Antarctica has begun and could cause sea levels to rise worldwide by four feet within 200 years.

“If that happens, the Los Angeles airport’s going to be underwater,” Brown told reporters at a presentation of his revised state budget proposal in Los Angeles. “So is the San Francisco airport.”

Source: http://www.latimes.com/local/political/la-me-pc-brown-sea-level-airports-20140513-story.html

Ok let’s do the math, first a look at the sea level rate from the Los Angeles tide gauge operated by NOAA:

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Why California is doomed in 12 figures

May 9, 2014
The new flag of California

The new flag of California

Per this KFI article, the state’s total debt –that is, our debt– is $340,000,000,000. $340 billion. Three-hundred and forty billion dollars:

California faces $340 billion in debts, or more than $8,500 for each of its 38 million residents, the nonpartisan Legislative Analyst’s Office said Wednesday in recommending that the state set priorities for paying down its key long-term liabilities.

The state should first address the $73.7 billion shortfall in the teachers’ retirement system, a debt that could cost the state, teachers and school districts a combined $5 billion a year to resolve over 30 years. Without changes, the system serving 868,000 members is projected to run out of money by 2046.

Paying down the $64.6 billion shortfall in health benefits for 277,000 retired state employees and their dependents should come next. That could cost the state $1.8 billion a year over 30 years, the analyst said, but getting started sooner would dramatically reduce costs over the long run.

The report comes a month before the state’s budget is due and feeds legislative debates over whether the state should spend or save its budget surplus and how to create a rainy day fund that would go before voters in November for their approval. It was released a week before Gov. Jerry Brown unveils his revised budget recommendations.

“I think it underscores what the governor has said for quite some time, which is that we have significant liabilities that we need to address,” said H.D. Palmer, a spokesman for the state Department of Finance.

There’s the understatement of the year. And I’ll bet dollars to donuts that doesn’t include local government debt.

This is insanity. If California were a normal family or business, we’d have been forced into bankruptcy court for liquidation, and the marshal would be holding a sale.

The article goes on to talk vaguely about Governor Brown’s plans for paying down this debt and for reestablishing a “rainy day fund,” but I would take that talk more seriously, if it weren’t coming from a man still wedded to his high-speed rail boondoggle and his plan to dig giant tunnels to move water around the Sacramento-San Joaquin delta. No one can talk fiscal responsibility and back those rolling fiascoes.

And the state’s budget surplus? Please. As the article correctly notes, this is from transient factors. Capital gains taxes are a one-time revenue source, and the Prop 30 tax increase will bring in more revenue only until the gouged high-income earners move to Florida or Texas. That surplus is as ephemeral as the state’s good credit.

Three-hundred and forty billion dollars. The mind just boggles that our so-called betters in Sacramento could have been so irresponsible. How’d we get here? I can think of a few reasons:

  • Creating a full-time legislature with professional legislators who will pander to the right donor groups to keep their cushy jobs, instead of acting in the interests of the broad public. Allowing both houses to be elected by population, thus assuring domination by the urban megalopolises at the expense of other regions.
  • Allowing public employee unions. Even FDR knew those were against the public interest. Eventually, and inevitably, they fell into a corrupt kickback arrangement with the professional legislators, an arrangement that has helped lead us to our massive debt.
  • Allowing ourselves to slip into a one-party state in which the governing spectrum ranges from liberal left to loony left. There’s no real opposition to put more than an occasional check on the worst tendencies of the Democratic majority, or its corruption.
  • And finally, We The People, ourselves. Far too few of us pay any attention to what goes on in Sacramento or on the many boards that operate (supposedly) in our name, far too many of us take at their word what the pols and their backers say without exercising the responsibilities of citizenship and examining them critically — and firing them when needed.

Until the day comes when we find ourselves stuck with a $340 billion bill.

To paraphrase Andrew Breitbart, how do you screw up paradise?

It will take decades to clean this mess up and, even if we can find the right people to do it, can we convince the voters to take the needed bitter medicine?

I just don’t know.


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